The impact of parental death on child well-being: evidence from the Indian Ocean tsunami.

Identifying the impact of parental death on the well-being of children is complicated because parental death is likely to be correlated with other, unobserved factors that affect child well-being. Population-representative longitudinal data collected in Aceh, Indonesia, before and after the December 2004 Indian Ocean tsunami are used to identify the impact of parental deaths on the well-being of children aged 9-17 at the time of the tsunami. Exploiting the unanticipated nature of parental death resulting from the tsunami in combination with measuring well-being of the same children before and after the tsunami, models that include child fixed effects are estimated to isolate the causal effect of parental death.